Bob Katter introduces banking reform bill

Bob Katter this week introduced a parliamentary bill to reform the banking system.

After the misconduct exposed by the royal commission, Katter wants to safeguard customers from future wrongdoing by separating retail commercial banking from wholesale and investment banking.

The regulations would be based on America’s Glass-Steagall legislation, which effectively warded off economic collapse in the US.

Caller Don was interested in Katter’s intentions for the sector, so Luke Grant called on the representative for Kennedy to offer up an explanation.

“The Great Depression hit at the end of 1929. At the end of 1932, Glass and Steagall moved this bill,” Katter explains.

“It was to reform and restrict the banks from the outrageous conduct that precipitated the Great Depression. From then on the banks could not act in the most irresponsible manner possible. They were restricted and they had to act responsibly by law. We did not have an economic collapse until Bill Clinton abolished the act. We were then back to the bad old days.”